Why California Is Going to Pot: Measuring the Economic Impact of Legalizing Marijuana in the Golden State

Why California is. From the * Going to Pot office of: mint.com Measuring the Economic Impact of Marijuana Legalization on the Golden State * Income Notation Total (Per person) Revenues: $1,300,000,000 ($35.14) Annual Tax Revenues Potential tax revenues from the sale I1 of marijuana, according to the Cali- Savings: fornia Board of Equalization. Arrest and Prosecution: 101,197 About 50% $8,750 Total marijuana arrests in california Percentage of arrests prosecuted Based on national figures, we are able to estimate the approximate Cost per person for prosecution cost of the arrest and prosecution for marijuana-related offenses. Total annual cost of arrest and prosecution $442,734,913 ($11.97) Incarceration: Percentage of arrests that result in incarceration: About 25% 6 Months $22,632 Average sentence for marijuana related offense: Roughly one quarter of those arrested are incarcerated for an Annual per person cost of incarceration average sentence of six months. Total annual cost of $286,285,045 ($7.74) incarceration Total Economic Benefit: $2,029,019,958 ($53.00) *Expenses The Department of Alcoholic Bever- Creation of regulatory age Control has an annual budget of $60,000,000 ($1.62) government agency over $58 million. The establishment of a similar regulatory agency would Marijuana awareness education program for youth be necessary to govern the sale and use of marijuana. $10,000,000 ($0.27) Based on California budget for alco- hol and tobacco education. Total costs before health care considerations $70,000,000 ($1.89) Increased Health Care Costs Cost of new lung cancer cases as a result of legalization ??? The increase in health care costs is the huge unknown factor in our calculations. However, it the legaliza- Cost of lung cancer treatment $100,000 Number of new lung cancer cases necessary each year in order to make legalization financially detrimental tion of marijuana would have to have to cause an additional 19,590 lung I cancer cases each year to be finan- cially detrimental. That would be a 19,590 75% annual increase from the * Net income $1,959,019,958 ir cases currently caused by tobacco and marijuana. ($52.95) Sources: drugwarfacts.com, cancer.org, ebudget.ca.gov